The U.S. Postal Service (USPS) has found its next Postmaster General to lead the national courier as it steers through an uncertain future under the Trump administration.
The USPS Board of Governors said Friday it selected FedEx board member and David Steiner for the gig. Pending a background check, he is expected to formally assume the position in July.
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Steiner will succeed former Postmaster General Louis DeJoy, who resigned in March, as well as Doug Tulino, the current acting Postmaster General. Tulino will return to his permanent position as deputy postmaster general and chief human resources officer at USPS.
The appointment of Steiner comes as the USPS incurrent another massive net loss of $3.3 billion in its second quarter, with controllable losses totaling $848 million. The USPS is now in year four of a 10-year turnaround attempt, known as the Delivering for America plan, which Steiner will be tasked to carry out.
Implementation of that reform, including a network consolidation that began last year, has been shaky as the agency sought to streamline mail processing and cut transportation costs. This resulted in delays across major metropolitan areas like Atlanta and Houston as well as rural zones, leading to multiple Senate committee hearings that grilled DeJoy on the state of the service changes.
Beyond its performance, USPS is operating under the possible shroud of future privatization. President Donald Trump has long been a proponent of privatizing the government organization, and said recently he would consider merging the USPS with the Commerce Department. Privatization of the USPS would require congressional approval. In his first administration, Trump sought to privatize the postal service, but the movement didn’t gain traction.
For now, Steiner’s statement suggests the agency would remain under government control.
“I deeply admire the public service and business mission of this amazing institution, and I believe strongly in maintaining its role as an independent establishment of the executive branch,” said Steiner.
Steiner’s biggest battle may come from USPS workers, with 10,000 recently cut through a voluntary early retirement program. USPS has 634,500 employees as of March 31, with over 90 percent being unionized, making it the largest union employer in the U.S.
Leaders of two of the biggest USPS unions, the American Postal Workers Union (APWU) and the National Association of Letter Carriers (NALC), both spoke out against the appointment.
APWU president Mark Dimondstein cited news reports claiming that the board would only consider a Postmaster General that had the approval of President Trump.
“No president, past, present or future, should have any say in who leads the independent Postal Service,” Dimondstein said.
Dimondstein expressed his concern that Steiner was on the FedEx board, which he will leave upon taking his post at USPS.
“FedEx is not only a major competitor of the Postal Service in the package market, but are part of the chorus of billionaires, profit-driven corporations and Wall Street that advocate for major privatization of postal services,” Dimondstein said. “By cowering to this administration, the BOG has likely chosen a ‘fox to guard the hen house.’”
FedEx also was the primary air cargo provider for USPS until that relationship ended in 2024, with competitor UPS filling the new role.
For the NACL, they called the move a “clear conflict of interest” for Steiner.
“It’s an aggressive step toward handing America’s mail system over to corporate interests,” said NALC president Brian Renfroe. “Private shippers have been waiting to get USPS out of parcel delivery for years. Steiner’s selection is an open invitation to do just that.”
The union head also criticized Steiner’s time as CEO of Waste Management, saying he “built his brand on union-busting, slashing jobs, and replacing workers with machines.” Steiner led a turnaround at the company during his 12-year tenure, expanding it into America’s largest waste services provider
A third union, the National Postal Mail Handlers Union, made a largely neutral statement on the appointment. President Paul Hogrogian acknowledged the labor group was “anxious” to see how Steiner would negotiate with the union on pay, benefits and safety, and fight threats of privatization.
“I look forward to engaging with the unions and management associations to ensure that together we create a world-class employment experience,” said Steiner in his statement.
With Steiner set to usher in a new era at USPS, the agency is proposing new shipping rates set to take effect July 13. The Board of Governors approved the adjustments last week.
According to a filing submitted to the Postal Regulatory Commission on Friday, the proposed changes include a 6.3 percent domestic price increase for Priority Mail; a 7.1 percent hike for USPS Ground Advantage; and a 7.6 percent jump for Parcel Select. Prices for Priority Mail Express, international services and other extra services will remain unchanged, USPS said.
This would be the second time the cost to use the shipping services increased this year, with the first changes taking effect in January.
The commission will review the changes before they are scheduled to take effect.
If approved, the price of a First-Class Mail Forever stamp would increase from 73 cents to 78 cents. This will be the first of five stamp price increases through 2027.
USPS delivered about 82 percent of First-Class Mail on time this quarter—down from 84 percent during the same period last year. On average, First-Class Mail arrived within three days.
Price increases for USPS mailing services are based on the Consumer Price Index (CPI). Shipping services prices are primarily adjusted according to market conditions, says to the courier.
“The USPS governors believe these new rates will keep the Postal Service competitive while providing the agency with needed revenue,” the delivery firm said in a release.